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One hurdle down (Manchin) on the BBB, 3 to go: the Senate parliamentarian, Sinema, and Gottheimer's
Problem Solver/Blue Dog crew (who are going to go ballistic as their SALT cap raise is NOT in the deal).
Sinema has said over and over no go for pharma price reform, although the deal does NOT have the tax hikes on the rich and corporations she said NO to.
I also do not trust the parliamentarian tbh. It is madness for one, unelected person to have THAT much power.
https://edition.cnn.com/2022/07/27/politics/schumer-manchin-deal-build-back-better/index.html
snip
Medicare drug price negotiation provisions remain in the bill
The deal keeps the prescription drug prices changes that Manchin had previously agreed to, including empowering Medicare to negotiate the price of certain costly medications administered in doctors' offices or purchased at the pharmacy. The Health and Human Services secretary would negotiate the prices of 10 drugs in 2026, and another 15 drugs in 2027 and again in 2028. The number would rise to 20 drugs a year for 2029 and beyond. It would also redesign Medicare's Part D drug plans so that seniors and people with disabilities wouldn't pay more than $2,000 a year for medication bought at the pharmacy. And, the deal would require drug companies to pay rebates if they increase their prices in the Medicare and private-insurance markets faster than inflation. Altogether, the drug price provisions would reduce the deficit by $288 billion over a decade, according to the Congressional Budget Office.
The deal keeps the prescription drug prices changes that Manchin had previously agreed to, including empowering Medicare to negotiate the price of certain costly medications administered in doctors' offices or purchased at the pharmacy. The Health and Human Services secretary would negotiate the prices of 10 drugs in 2026, and another 15 drugs in 2027 and again in 2028. The number would rise to 20 drugs a year for 2029 and beyond. It would also redesign Medicare's Part D drug plans so that seniors and people with disabilities wouldn't pay more than $2,000 a year for medication bought at the pharmacy. And, the deal would require drug companies to pay rebates if they increase their prices in the Medicare and private-insurance markets faster than inflation. Altogether, the drug price provisions would reduce the deficit by $288 billion over a decade, according to the Congressional Budget Office.
Paying for the bill
To raise revenue, the bill would impose a 15% minimum tax on corporations, which would raise $313 billion over a decade. While details on the current deal remain scant, the House version of the Build Back Better package would have levied the tax on the corporate profits that large companies report to shareholders, not to the Internal Revenue Service. It would have applied to companies with more than $1 billion in profits and yielded a similar revenue-raising figure. The current deal also aims to close the carried interest loophole, which allows investment managers to treat their compensation as capital gains and pay a 20% long-term capital gains tax rate instead of income tax rates of up to 37%. Eliminating this loophole, which would raise $14 billion over a decade, has been a longtime goal of congressional Democrats.
The package also calls for providing more funding to the IRS for tax enforcement, which would raise $124 billion.
Democrats say families making less than $400,000 per year would not be affected, in line with a pledge by Biden. Also, there would be no new taxes on small businesses. Manchin said in a statement that the deal would ensure "that large corporations and the ultra-wealthy pay their fair share in taxes," though it doesn't contain the tax rate hikes on rich Americans and big companies that Democrats initially wanted to include in the budget reconciliation packages before they were shot down by Democratic Sen. Kyrsten Sinema of Arizona.
To raise revenue, the bill would impose a 15% minimum tax on corporations, which would raise $313 billion over a decade. While details on the current deal remain scant, the House version of the Build Back Better package would have levied the tax on the corporate profits that large companies report to shareholders, not to the Internal Revenue Service. It would have applied to companies with more than $1 billion in profits and yielded a similar revenue-raising figure. The current deal also aims to close the carried interest loophole, which allows investment managers to treat their compensation as capital gains and pay a 20% long-term capital gains tax rate instead of income tax rates of up to 37%. Eliminating this loophole, which would raise $14 billion over a decade, has been a longtime goal of congressional Democrats.
The package also calls for providing more funding to the IRS for tax enforcement, which would raise $124 billion.
Democrats say families making less than $400,000 per year would not be affected, in line with a pledge by Biden. Also, there would be no new taxes on small businesses. Manchin said in a statement that the deal would ensure "that large corporations and the ultra-wealthy pay their fair share in taxes," though it doesn't contain the tax rate hikes on rich Americans and big companies that Democrats initially wanted to include in the budget reconciliation packages before they were shot down by Democratic Sen. Kyrsten Sinema of Arizona.
Notably, Manchin also threw cold water on one of Schumer's priorities -- addressing the $10,000 cap on state and local tax deductions, known as SALT, that was part of the GOP tax cut package in 2017 and affects many states in the Northeast and on the West Coast. Many details of the current deal remain to be worked out, which could delay or scuttle it, said Howard Gleckman, a senior fellow at the nonpartisan Tax Policy Center.
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